Shell reported third-quarter adjusted earnings of $10.81 billion, nearly double the $5.43 billion achieved in the same period the previous year, the company announced Thursday. The result exceeded analyst expectations of $9.92 billion and marked the strongest performance since the second quarter of 2022, following Russia’s full-scale invasion of Ukraine. The company’s London-listed shares rose approximately 3% in morning trading, reaching an all-time high.
Refining margins achieved a record $42 per barrel during the quarter, surpassing the previous high of $28.04 per barrel set in the second quarter of 2022. The elevated margins reflected constrained global refining capacity and supply disruptions affecting energy markets worldwide. CEO Wael Sawan attributed the strong operational performance to the company’s execution amid what he characterized as “continued severe disruption to the global energy system.”
Shell announced a $5 billion share repurchase program to be completed over the following three months, an increase from the $3 billion program executed in the prior quarter. The company completed a $16.4 billion acquisition of Canadian energy firm ARC during the period, aimed at boosting production capacity. Despite this major transaction, Shell achieved substantial net debt reduction.
Geopolitical factors significantly influenced energy markets, with Brent Crude trading near $114 per barrel Thursday, compared to approximately $65 a barrel a year earlier. Supply constraints stemmed from curtailed Gulf exports related to U.S.-Israeli military operations and regional shipping disruptions. A global refining capacity shortage, compounded by strikes on Russian facilities, elevated prices for petroleum products including gasoline, diesel, and jet fuel. France’s TotalEnergies similarly reported more than doubled adjusted net income of $9.1 billion in third-quarter results, benefiting from historically elevated refining margins across Europe and globally.
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